US stocks retreat on heightened tariff tensions
WASHINGTON: US stocks mostly slipped Monday on global trade tensions, with China rejecting Washington's accusations that it violated a pact to de-escalate tariffs, while President Donald Trump's plans to double steel levies added to strain with the EU.
The Dow Jones Industrial Average slipped 0.4 percent to 42,109.92, while the broad-based S&P 500 Index lost 0.1 percent to 5,903.38.
The tech-focused Nasdaq Composite Index edged up 0.2 percent to 19,153.48.
'Every time it seems as if the trade war is cooling off,' said Sam Stovall of CFRA Research, 'another little fire gets set.'
Wall Street Week Ahead: Jobs data, tax bill, trade on tap for rebounding US stocks
'I think that's an issue,' he added, noting that tariffs could push inflation measures higher.
Temperatures between Washington and Beijing rose as Trump on Friday accused China of violating a deal to temporarily lower tit-for-tat tariffs, signaling renewed strain in trade ties.
China denied Trump's claims, saying on Monday that Washington made 'bogus charges' against it. It vowed to push ahead with countermeasures to safeguard its interests if necessary.
Separately, Trump's announcement late Friday that he would double US tariffs on imported steel and aluminum to 50 percent starting midweek sparked dismay from the European Union over the weekend.
The bloc said Saturday that it 'strongly regrets' the planned tariff hike and warned it was prepared to retaliate.
Steel stocks surged Monday on Trump's tariffs announcement, with mining firm Cleveland-Cliffs' shares popping by more than 20 percent.
Looking ahead, investors will be eyeing official employment data released at the end of the week.
'We're heading into a month in which a lot of the economic data could end up being a bit challenging,' said Stovall.
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